TCB subsidy to reach zero within 4–5 years: Commerce Minister

The government intends to gradually wean the Trading Corporation of Bangladesh (TCB) off subsidies, reducing them to zero within four to five years, Commerce Minister Khandaker Abdul Muktadir announced on Thursday. Speaking at the launch of a mobile application for TCB cardholders, he explained that the reform would encompass cleansing beneficiary lists, digitising smart cards, enhancing supply-chain transparency and introducing technology-driven dealer recruitment.

According to the minister, nearly 5.9 million of TCB's previous 10 million beneficiaries were found, upon verification, to harbour questionable or fraudulent information, whereas approximately eight million genuine beneficiaries have now been identified. Moreover, digitising TCB cards could save the government between Tk300 crore and Tk350 crore annually by curbing irregularities and bolstering accountability. An online dealer system is likewise envisaged, with digital lotteries to be deployed where applications for dealership positions exceed availability.

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The subsidy phase-out is designed to curtail operational costs and wastage while enhancing market efficiency; nevertheless, the government maintains that subsidised food distribution to low-income households will continue uninterrupted. TCB currently supplies essential commodities at subsidised prices to around 7.8 million families each month. Consequently, the government is endeavouring to strike a balance between fiscal prudence and social protection, strengthening beneficiary verification, digital distribution and supply-chain oversight even as it gradually diminishes its reliance on public subsidies.